Racism consists of both prejudice and discrimination based in social perceptions of observable biological differences between peoples . It often takes the form of social actions , practices or beliefs , or political systems in which different races are perceived to be ranked as inherently superior or inferior to each other , based on presumed shared inheritable traits , abilities , or qualities . In a given society , those who share racial characteristics socially perceived as undesirable are typically under-represented in positions of social power , i.e. , they become a minority category in that society . Minority members in such a society are often subjected to discriminatory actions resulting from majority policies , including assimilation , exclusion , oppression , expulsion , and extermination . Overt racism usually feeds directly into a stratification system through its effect on social status . For example , members associated with a particular race may be assigned a slave status , a form of oppression in which the majority refuses to grant basic rights to a minority that are granted to other members of the society . More covert racism , such as that which many scholars posit is practiced in more contemporary societies , is socially hidden and less easily detectable . Covert racism often feeds into stratification systems as an intervening variable affecting income , educational opportunities , and housing . Both overt and covert racism can take the form of structural inequality in a society in which racism has become institutionalized
racism has become institutionalized
Institutional racism
Social stratification