Institutional racism occurs when minorities are systematically discriminated against by any group or organization.
But local leaders said the complaints and protests sparked by David Horowitz's article that denounced reparations for slavery in Monday's edition of The Daily Tar Heel have not had any effect on the way they govern.
Chapel Hill received a formal complaint of institutional racism about five years ago.
Employees in the Department of Public Works filed a complaint with the federal Equal Employment Opportunity Commission because they thought the town systematically kept minorities in lower-paid positions and did not give them ample opportunities to advance, Chapel Hill Mayor Rosemary Waldorf said.
Waldorf said the EEOC found no grounds for these claims, but the Town Council did take steps to ensure such complaints would not come up again.
She said that their lowest paid employees have a higher salary than the average in this region.
Waldorf also said the Town Council formed a committee of top- and middle-level public works management and employees to talk about grievances and ways to improve upon those.
She added that the Town Council tried to stop these types of complaints by providing minorities with training opportunities that would help them be promoted.
Some local officials maintain that this type of racism is hard to pinpoint and eradicate. "Institutional racism is very prevalent in our society," said Carrboro Board of Aldermen member Jacquelyn Gist. "What's insidious about it is that good, well-intentioned people perpetuate it without meaning to."