Institutional racism is a complex, multifaceted concept, wherein definitions often stress some aspects of the term and not others. Some definitions, for example, focus on the outcome of segregation and inequality, while others focus on the outcome of unearned privileges and advantages. Frequently, definitions stress that once racism takes hold and is embedded within institutions it does not require "intent." Rather, institutional racism can be perpetuated by seemingly benign policies, practices, behaviors, traditions, structures, etc., which is why it usually goes unchallenged.

To differentiate between racism (defined below) and racial prejudice , the following definition is frequently used:

Racism = racial prejudice plus institutional and systemic power to dominate, exclude, discriminate against or abuse targeted groups of people based on a designation of race. While racial prejudice can result in mistreatment, racism results in a special type of mistreatment: oppression. Oppression results when

(1) racism is a part of the dominant culture's national consciousness;

(2) it is reinforced through its social institutions; and

(3) there is an imbalance of social and economic power within the culture.