This article presents a theory of racialized organizations, arguing that organizations are not neutral but are racial structures that shape the social and material resources available to racial groups. The theory bridges organizational theory and race scholarship, emphasizing that race is constitutive of organizational foundations, hierarchies, and processes. It argues that racialized organizations enhance or diminish the agency of racial groups, legitimate the unequal distribution of resources, and that Whiteness functions as a credential. The theory also highlights the decoupling of formal rules from organizational practice as often being racialized. The article critiques the traditional view of organizations as race-neutral and instead proposes that organizations are shaped by racial processes that influence both state policy and individual attitudes. It argues that race is a multidimensional, sociopolitical construction that is connected to the distribution of social, psychological, and material resources. Racialization is the extension of racial meaning to resources, cultural objects, emotions, bodies, and organizations. Racism is defined as the racial ideology of a racialized social system, justifying racial inequality. The theory extends structural theories of race and engages with critical race theory, arguing that race is an institutionalized "field." Organizations are central to the process by which racial categories are created, inhabited, transformed, and destroyed. The article discusses how racial schemas are encoded in the concept of race and how they influence organizational action. It also examines how racialized organizations shape the distribution of resources along racial lines and influence state-level processes and individual expressions of racial animus. The article argues that organizations are racial structures that reproduce and challenge racialization processes. It discusses how racialized organizations can shape the formation and functioning of organizations, and how they influence the stability and change of racial inequality. The theory also highlights the role of meso-level organizations in the reproduction of racial inequality and the importance of understanding organizations as nested within broader fields and institutional logics. The article concludes by emphasizing the need for a structural theory of racial inequality that incorporates organizations, and how this theory can help explain the formation and functioning of organizations, as well as the stability and change of racial inequality. It argues that seeing race as constitutive of organizations helps us better understand the formation and everyday functioning of organizations, and that incorporating organizations into a structural theory of racial inequality can help us better understand the institutionalization of racial inequality.This article presents a theory of racialized organizations, arguing that organizations are not neutral but are racial structures that shape the social and material resources available to racial groups. The theory bridges organizational theory and race scholarship, emphasizing that race is constitutive of organizational foundations, hierarchies, and processes. It argues that racialized organizations enhance or diminish the agency of racial groups, legitimate the unequal distribution of resources, and that Whiteness functions as a credential. The theory also highlights the decoupling of formal rules from organizational practice as often being racialized. The article critiques the traditional view of organizations as race-neutral and instead proposes that organizations are shaped by racial processes that influence both state policy and individual attitudes. It argues that race is a multidimensional, sociopolitical construction that is connected to the distribution of social, psychological, and material resources. Racialization is the extension of racial meaning to resources, cultural objects, emotions, bodies, and organizations. Racism is defined as the racial ideology of a racialized social system, justifying racial inequality. The theory extends structural theories of race and engages with critical race theory, arguing that race is an institutionalized "field." Organizations are central to the process by which racial categories are created, inhabited, transformed, and destroyed. The article discusses how racial schemas are encoded in the concept of race and how they influence organizational action. It also examines how racialized organizations shape the distribution of resources along racial lines and influence state-level processes and individual expressions of racial animus. The article argues that organizations are racial structures that reproduce and challenge racialization processes. It discusses how racialized organizations can shape the formation and functioning of organizations, and how they influence the stability and change of racial inequality. The theory also highlights the role of meso-level organizations in the reproduction of racial inequality and the importance of understanding organizations as nested within broader fields and institutional logics. The article concludes by emphasizing the need for a structural theory of racial inequality that incorporates organizations, and how this theory can help explain the formation and functioning of organizations, as well as the stability and change of racial inequality. It argues that seeing race as constitutive of organizations helps us better understand the formation and everyday functioning of organizations, and that incorporating organizations into a structural theory of racial inequality can help us better understand the institutionalization of racial inequality.