radioButtonListItem.Attributes.Add("style", "color:white;background-color:" + alteredColor);
This will display the my radio button list similar to this,
However, this looked very ugly when viewed in Internet Explorer 8,
After doing a small research, I understood that the background color is missing. Unfortunately, I was unable to browse the google in a effective way, since the problem is some what new. However with some observation Microsoft provided a good alternative for this issue. There is a button named "Compatibility View" which is placed just beside address bar of IE 8,
In the above image, you can see that there is a button just beside the Address bar. While clicking this button the page will reload. This has fixed the problem in my case.