Final answer:
Carmen's view becomes institutional racism when it leads to policies and practices within the club that systematically discriminate against people of color, reflecting her influence on the club's formal agenda.
Step-by-step explanation:
Carmen's view about not admitting people of color into a club would move from interpersonal racism to institutional racism when her individual beliefs lead to or support policies and practices within the institution that systematically disadvantage people of color. This transition occurs when her views are manifested in the formal structure, rules, or operations of the club, influencing its actions and decisions to the detriment of minority groups. If Carmen has a role in the governance or influential capacity within the organization and her views shape the club's admission policies, which then become discriminatory, that incorporation of racist policies is indicative of institutional discrimination.
For instance, when social and political institutions with the power to affect large groups adopt and maintain discriminatory practices like segregation in schools, as mentioned in the Cambridge, Maryland example with Gloria Richardson's activism, or the promotion of a group's status (such as white privilege). Even more subtle forms, such as racial profiling that leads to disproportionate arrests and convictions, are manifestations of institutional racism.