I had a person tell me in game they hate black people, then left a comment on my profile referring to black people as black monkeys. I reported them. About five times. Steam does nothing. Their comment would be still up if I haven't removed it manually after one of many reports resulting in nothing. Their profile is full of proof of it being a long term continuous effort. Their account has a high level, which makes me think it may be why Steam seems to be protecting them. I reported people in the past and stuff was done about it. It's my first time dealing with blatant racism AND no moderation effort from Steam. I even ended up messaging steam support about my concerns and got a generic response which amounted to nothing.
I see people speaking up about poor moderation on other platforms, so I chose to speak up about Steam's as I'm really tired of this bullshit.
A couple of structural and ideological problems at Valve lead to this. First, the company's "flat" organization where people work on what they want means that unless somebody wants to volunteer to mod Steam communities (which no sane person would), they won't bother. Further, even if someone wanted to mod Steam, they'd have to consider that it might be damaging to their career because "I remove racists and nazis from Steam" isn't going to get the same kind of good performance reviews that some big sexy project will (even if it never releases).
Second, the leadership are rich white libertarians. They don't care what their users say or do because of nonsense beliefs so long as they keep making money. The only thing that might get them to take action would be if this kind of thing became a big scandalous news story, because at that point it might be viewed as a threat to their bottom line, but that never happened with the child gambling so it's still unlikely.