Institutional racism occurs within and between institutions. Institutional racism is discriminatory treatment, unfair policies and inequitable opportunities and impacts, based on race, produced and perpetuated by institutions (schools, mass media, etc.). Individuals within institutions take on the power of the institution when they act in ways that advantage and disadvantage people, based on race.
Example: A police officer treats someone with racial bias, engages in institutional racism, representing a law enforcement institution.
From Structural Racism, by Keith Lawrence, Aspen Institute on Community Change and Terry Keleher, Applied Research Center at UC Berkeley, for the Race and Public Policy Conference 2004
Definitions by Sharon Martinas, Fourth Revision Spring 1995