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Among the smugglers who have institutionalised law-breaking loyalty to each other, it has become an article of faith.
An organisation is centrally managed by authority. An institution has no such centralised authority. It is self-managed and self-existent more like a family than like an office.
An institution remains an institution whether it serves a good cause or a bad one. Smuggling serves a wrong cause. It is based on law-breaking. It is worth noting that before law was born what we now call smuggling was trade. There was no law breaking as there was no law yet. Among the smugglers loyalty is an article of faith as there is only one punishment, drowning in the sea. Today man is law-abiding out of a developed conscience. Then, among the smugglers, one submits to LAW – the law of law-breaking – on pain of death. We say it is institutionalised as no one administers it. It is followed as a culture among the smugglers from various parts. All have the same loyalty, secrecy, readiness to act which is a culture among smugglers of all nations.
The early pirates became Admirals later on. Smugglers on entering the Navy were found to be very efficient.
(Before an organisation such as bank or before trade was born as we now know it, they existed as an institution after a fashion. In certain cases, the ORGANISATION is preceded as well as succeeded by a kind of institution.)
We refer to law–breaking that is institutionalised by the smugglers, since they cannot have an organisation, centralised or not.