Racism has the potential to ruin our relationships as well as our personal integrity. While few people admit to being racist, most if not all people hold racist beliefs in the form of stereotypes and prejudices. Not all stereotypes equal racism but stereotyping can lead to racist attitudes and beliefs. For example, the stereotype that Asians are bad drivers leads directly to prejudicial thoughts about Asian people, to lump all people of Asian descent into a category and not allowing for individual differences. Stereotypes, even seemingly innocent ones, can cause feelings of resentment, anger or even hatred. When those feelings are discussed openly and gossiped about in certain social groups, a combination of psychological and sociological factors can turn simple stereotypes into racism. Needing to fit into with an in-group, an individual may get on board and criticize members of different races without ever having encountered an individual from that race. Stereotypes and prejudices take on a life of their own like a fantasy story and can easily lead to widespread racism within a society.

Moreover, stereotypes create self-fulfilling prophesies that can also perpetuate racism because each time a person notices a bad driver who happens to be Asian he or she will feel justified in holding the belief. When prejudices get out of control and are viewed as truth rather than as fantasy or over-generalization, racism can result. Racism itself can lead to violence or social cruelty. In the schoolyard, children may be teased and in the workplace, individuals may be passed by for promotions or higher pay.

Racism also results from an attitude of "us vs. them," in which all differences are viewed as negative. in-group solidarity may be a necessary part of human nature but it is also possible for people to overcome their racist prejudices by contentiously refuting stereotypes and making a point to view each person as an individual. Judging a person on the basis of race or culture prevents the development of meaningful friendships and continues to breed racist attitudes. Racism can also be perpetuated by the media. Portrayals of African-Americans, Asians, and other minority groups on television or in movies are often stereotypical. Often stereotypes reflect realistic characteristics of various ethnic and racial groups, but stereotypes are just generalizations and can too easily become prejudices and biases.