Polarization
When a charged object is brought towards a neutral object and the molecules in the neutral object orientate so that there is a net attraction.
This mostly occurs for insulators, where there is no major movement of electrons.
Induction
Induction is similar, but because the neutral object is a conductor, the electrons can freely move. Instead of the molecules orientating, the electrons themselves can move away from the charged object. If there is a ground, then the electrons can move into the ground, leaving the neutral object into a net positively charged object.
Note
Note that electrons move within the object and protons do not move within the object.