Ethical hacking involves locating vulnerabilities in computer systems by simulating malicious hackers with permission. An ethical hacker tests security defenses by conducting penetration tests to identify weaknesses from an attacker's perspective in order to strengthen security. The process of ethical hacking involves preparation, information gathering, vulnerability analysis, simulated attacks, escalating access, covering tracks, and creating backdoors to access compromised systems. The goal is to improve security by identifying vulnerabilities before criminals can exploit them.