The Humpty Dumpty approach

The death of a young Asian prisoner at the hands of his psychopathic cell-mate was surely a terrible thing, but the inquiry into it has once again focused attention on the expression "institutional racism". Am I alone in finding this an unacceptably sloppy use of the language? An institution is an organization created for a specific purpose. An organization is by definition organized - in other words it functions by a set of rules, written or unwritten. For an institution to be racist therefore, its rules have to be racist. A classic example would be the old apartheid government of South Africa, or certain Gentlemen's Clubs back in the early part of the last century, both of whom had rules specifying different treatment for different races. But the Police or the Prison Service don't have racism written into their rules and so to my way of thinking cannot be institutionally racist. If what you mean is that racism is rife within an institution, then there are plenty or words you can use - endemic, pervasive, systemic, widespread, general, rampant, sweeping, and so on and so on. So why use an inappropriate expression?