This research proposal aims to identify the impact of ethical behaviour in managing equality and diversity for improving the performance of the company. The study focuses on Sainsbury, a large chain of retail stores and supermarkets, and explores the challenges faced by the company in managing ethical behaviour. The research objectives include understanding the concept of ethical behaviour, evaluating its influence on managing equality and diversity, outlining the challenges faced by Sainsbury, and recommending strategies for improving ethical behaviour. The research will use qualitative research approach and methodologies.