What exactly is ethical search engine optimization? SEO or Search Engine Optimization has two different faces. On one side you have tricks and tactics that intentionally try to manipulate how search engines view your page or website. This is considered “black hat” search engine optimization and uses common tactics such as spamming, link farms, cloaking, redirects, and other black hat techniques. The other side or “white hat” side of SEO is dedicated to providing the easiest site structure that is well organized and attempts to create consistency between what is actually on the page and what you are telling the search engines is on the page. Determining what is black or white is similar to determining right from wrong. Once you understand SEO you can use your conscious to know whether something “feels” like you are trying to trick the search engines.. If so, you are probably in the black area if not grey.
Sometimes it’s not so clear as to whether what you are doing is black or white. We call these areas “grey hat”. Google is attempting to draw a harder line between the two in an attempt to clear as much of the grey area as possible. I expect their next Google Algorithm change will have new factors in the algorithm to try to establish a clear definition between the black hat areas and the white hat areas. I expect they will attempt to do this with new smarter logic that can distinguish between spam links and valid links. I also think that the new algorithm will attempt to remove some of the grey area by discounting the same class C IP backlinks. The reason for this is to discredit the companies that are benefiting from hundreds if not thousands of links from the same website.
It will be interesting to see what happens with this and how the upcoming changes will impact both black and white hat SEO.
source: seoslap