Racial or racial describes something having to do with blood or ancestry, or with the differences between ancestral or ethnic groups--
This company believes that racial diversity is a worthwhile goal, and hires accordingly.
There are no racial considerations in that company's hiring policies.
Racist or racist describes behavior or speech based on the idea that some ancestral or ethnic groups are superior to others--
He lost his government job when they found out that he belonged to a racist organization.
Any threats, name-calling, hate speech or racist comments will be deleted.
Now that you know that, you can say--
"The old policy was racist in effect, if not in intent; the new policy will help us to promote racial diversity."
Note--"racy" is an informal term describing something suggestive, as alluding to sex behavior or sexual mores--
Please don't tell that racy story in front of the children.
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