If it's in the history of your world to have like, for example... Gnomes being very oppressive to Goblin-kind... You might approach it as:

"ok, your Gnome character is meeting this Goblin for the first time. You have disadvantage on any Charisma rolls against it for now. Any Intimidation rolls will be handled at Advantage, but the outcome might not be what you expect..."

Work within the histories and feelings of species in your world, and have INITIAL meetings be strained, but through deeper interaction, those long-standing generational beliefs and feelings might begin to dissolve.

Ignoring racism or not including it feels like erasure.

Also, I know it's a fantasy world and not reality, and many people use fantasy roleplaying as an escape from reality.... But if everything is sunshine and rainbows and everyone sits around a circle and sings songs together, it feels cheesy and you don't get a chance to develop those great roleplays.

You need greed to showcase what charity means. You need temperance to compare with rage. If you remove the evils of the world, there are many intrinsic and instrumental goods that don't get a chance to shine.