Racial discrimination has grown its roots very deeply in the society and here the causes and factors affecting racial discrimination are discussed and how that has affected the society. Racial Discrimination in the society is done in ways like Prejudice states the unreasonable and negative behavior by a group of people of individuals on the basis of their physical characteristics and race. Racial Assumptions are the assumptions that influence the thought process of an individual and guide his actions and behavior toward people of other races. Racial jokes and slurs when used in workplaces to make the group or an individual feel inferior makes the environment of the organization unhealthy and results in lowering the self-esteem of the individuals and grievances between the workers of the organization. Discrimination is act of treating a group of people less or inferior than others. Discrimination is made mainly due to attitude problems in individuals to hurt the self –esteem of other individuals by making them feels inferior in various terms. Harassment is done in many ways like by the use of abusive language, insult of an individual for the work he has done or on any basis and threats. Harassment is done by an unlawful and intentional behavior toward another individual to hurt their dignity and self-respect (Williams, 1997). Institutional Racism occurs when racism is done by any of the institutions of the country like government, educational institutions, hospitals etc. on the basis of color, caste, creed, origin and language. Micro-inequities are unintentional acts often remain unrecognized by the perceiver and are hard to prove small incidents. These are a part of racial discrimination but are not acknowledged as racial discrimination.