Institutional racism exists when personal and cultural racism is formalized within institutions, resulting in the maintenance of existing and historically constituted access to privilege, power, and control of resources. The values and mission of an organization will tend to reflect those who hold power. Those who hold power will tend to define positions and hire people who, in general, will reproduce the existing organizational structure and purpose. In addition, institutions are made up of social networks that are crucial to gaining access to information about positions that become available. However, these networks are usually selective and not readily available to people of color, women, or any other under-represented group. Finally, job descriptions and criteria, recruitment processes, and the evaluations of candidates all frequently involve subjective appraisals and decisions, which, without an explicit affirmative action plan, can also lead to the reproduction of the status quo.

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