Common meaning:

Racism that is embedded in the regulations and laws of an organization or society.

Hidden meaning of the Equity religion: 

When groups achieve different outcomes, it means racism is present despite even good intentions.

Discussion:

The Equityists believe that whenever people from different racial groups achieve a different level of outcome, then racism is not only present but is the only factor at play. Institutional racism exists not because we can point to particular policies or actions, but because there is a difference in racial outcomes.

Like all religions, Equity tends to simplify the world, but reducing everything to a single cause is more than a bit extreme. Claiming that the only allowable variable that can cause differences between groups is racism, borders on the insane. 

Believers claim that all Western organizations are racist but that most of the evidence for this is invisible. This means, no matter what the intentions of the organization were, it has to be guilty for the racism that the Equityists say has taken place.

How could this possibly go wrong?!