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Unfamiliarity: One of the most common causes of racism is unfamiliarity. Some people become fearful of what they don't know or understand. If a child has grown up with people from only their race, then the child is more likely to become racist towards that race.
It occurs when institutions, including corporations, governments and universities, discriminate either deliberately or indirectly, against certain groups of people to limit their rights. Race-based discrimination in housing, education, employment and health for example are forms of institutional racism. It reflects the cultural assumptions of the dominant group, so that the practices of that group are seen as the norm to which other cultural practices should conform (Anderson and Taylor, 2006).