Definitions of Institutional racism on the Web:

Those forces, social arrangements, institutions, structures, policies, precedents and systems of social relations that operate to deprive certain racially identified categories equality .
www.socialpolicy.ca/i.htm

or structural racial discrimination -- racial discrimination by governments, corporations, or other large organizations. (eg Mary cannot get a job, despite her qualifications, because she is of race Y.)
www.politicalinformation.net/encyclopedia/Racism.htm

Institutional racism (or structural racism) is a form of racism that occurs in institutions such as public bodies and corporations, including universities.
en.wikipedia.org/wiki/Institutional_racism