This article bridges the gap between organizational theory and race studies by proposing that organizations are racial structures—cognitive schemas that connect organizational rules to social and material resources. The author argues that race is constitutive of organizational foundations, hierarchies, and processes, and develops four tenets: (1) racialized organizations enhance or diminish the agency of racial groups; (2) they legitimate unequal resource distribution; (3) Whiteness is a credential; and (4) decoupling formal rules from organizational practice is often racialized. The theory emphasizes the role of organizations in reproducing and challenging racial inequality, and discusses how organizational changes can be driven by internal and external factors. The author concludes by highlighting the need for a structural theory of race and organizations to better understand stability, change, and the institutionalization of racial inequality.This article bridges the gap between organizational theory and race studies by proposing that organizations are racial structures—cognitive schemas that connect organizational rules to social and material resources. The author argues that race is constitutive of organizational foundations, hierarchies, and processes, and develops four tenets: (1) racialized organizations enhance or diminish the agency of racial groups; (2) they legitimate unequal resource distribution; (3) Whiteness is a credential; and (4) decoupling formal rules from organizational practice is often racialized. The theory emphasizes the role of organizations in reproducing and challenging racial inequality, and discusses how organizational changes can be driven by internal and external factors. The author concludes by highlighting the need for a structural theory of race and organizations to better understand stability, change, and the institutionalization of racial inequality.