This paper explores the ethics behind ethical hacking and the problems that lie with this emerging field of network security. The purpose of this paper is to tell what is hacking, who is hackers, what is ethical hacking, what is the code of conduct of ethical hackers and the need of them. Basically, hacking is the expertise in any field that can be used for both ethical and unethical purposes. Therefore, hackers are classified as per their working and as per their knowledge. The hackers are classified as white hat hackers, lack hat hackers and grey hat hackers. It focuses on the role of ethical hacker to remove it from the offender, Cyber-crime and illustrate on proactive approach to decrease the threat of hacking and Cyber crimes.