Yes, humans are biased toward themselves because that is human nature and humans are biased toward those they love because they care about them. The problem is that mistreatment of others comes out of that. We want to be accepted, loved, liked, etc. by those we live with (family, community, etc.). We also want to hang out with others like us (culture, food, music, clothes, language, etc). In so many ways, we forgive, accept, defend, and help those closest to us.
Human beings are also quick to judge others who they don't know as well. Human beings do such a good job of blaming others for their problems and are also scared of them. We often take out frustrations and anger on others. People that are "different" are usually on the receiving end of that.
So, if you want to get rid of mistreatment of others (especially in the community level), racism in this case, we will need to get rid of this good bias toward self and those they love (family). That way, you will give others (those that are very different from you) the same love, appreciation, and care as if they are like family.