This paper reviews the literature on campus climate as it relates to gaps in participation rates and attainment levels among White, African American, and Latino students. The paper cites reports noting that a large number of African American students perceive racism as a problem on campus, and that a majority perceive themselves to be potential targets of discrimination. It reviews legislation in passed in California to improve campus climate, and examines studies of predominately white institutions that have developed innovative programs to address the problem. The report also examines research studies that provide contexts for inclusion; these focus, for example, on peer groups, student activities that improve racial attitudes, and how perceptions of discrimination have a negative effect on students' grades. Another section in the paper examines many innovative strategies to improve the racial climate, citing papers by Tinto and Sedlacek among others, as well as programs developed by various universities throughout the United States. Still another section cites papers that examine the role of academic institutions and states in building and maintaining a welcoming campus atmosphere. (Contains 61 references.) (CH)