This paper challenges the “characterological” theory of racial injustice. This theory, widely held in corporate efforts to address race, simultaneously endorses a “structural” account of racism while advocating deeply individualistic remedies: challenging systemic racism, on this view, requires directing our energies inward toward our most ingrained habits and self-conceptions. I begin by reconstructing the characterological theory and its appeal. I then argue that it rests on questionable, if not untenable, cognitive assumptions. Instead of seeing racism as carried forth by agents’ (...) deeply internal characters, I argue that a structural account of racial domination is better served by understanding cognitive processes as externalized and conducted through our environments. Drawing on theories of the “extended mind” and distributed cognition, I offer an account of both structural racism’s persistence and individual racist actions, which is anchored in the environmental (and not characterological) manifestations of racial hierarchy. I conclude with the normative potential of business ethicists adopting the distributed cognition framework. (shrink)