“No one is born hating another person because of the colour of his skin, or his background or his religion. People must learn to hate and if they can hate they can learn to love, for love comes more naturally to the human heart than its opposite.” (Mandela,N.1994)This essay emphasises at demonstrating a range of theories on inclusion and the adverse effects on people’s lives brought about by discrimination and inequality. It will aim on racism and the implementation of anti-discriminatory practices that have been set out to promote equality. The essay will also involve happenings in history, laws and legislations that have enabled society and the early year’s settings to work towards good practice.Discrimination is an act upon which a person is secluded from a certain group based on the grounds of age, race, gender, religion, sexual orientation or cultural background. As stated by a source from the internet (Name and date unknown) “Discrimination is a violation of civil rights law defined by unfavourable or unfair treatment of a person or class of persons in comparison to others who are not members of the protected class because of: race, sex, colour, religion, national origin, age, physical/mental handicap, sexual harassment, sexual orientation or reprisal for opposition to discriminatory practices.” It can be direct or indirect bringing about feelings of inferiority and have a lifelong effect of low self esteem and lack of confidence.A study by Milner(1983) demonstrates that children as young as three are able to understand the meaning of colour differences between individuals and to perceive that being white is considered better than being black. (Cited by Kay.J, 2001). This distinction can have a depressing effect on children’s lives, creating a number of issues as they blossom into pessimistic adults with negative stereotypes and labels. The poem ‘It Hurts’ by Racheal McLay, has a lot of in-depth meaning and is evidence of the effect of racism encountered by a little child.(See Appendix 1). Inequality affects everyone and people or children who have experienced discrimination develop poor self esteem, and have been damaged in many ways.In the words of Malik, (2003, p1) “Race is defined as a label that is socially constructed; it describes a group of people who see themselves or who are seen by others, to have the same ethnic origin. It is often an assumption based on a person’s outward appearance and skin colour.” Racism occurs when people become prejudice against people who look different to them because of the colour of their skin or have a different religion. Racism can be from holding and showing strong views against people by verbally or physically abusing them because they are seen as ‘different’ to themselves but actually are not.Our society comprises people of different races, religion, cultures, languages, ethnic origins nationalities and colours. The term ‘race’ first came to be used in the 16th century and since then racial discrimination has been a problem in social history. The discrimination of ethnic minorities has been a controversial issue, existent in society, and workplaces for many years.