What is the purpose of the Audi electronic stability control feature?

I recently purchased an Audi and noticed the electronic stability control feature. Can you explain what it is and how it works?

The Audi electronic stability control (ESC) is a safety feature that helps prevent vehicle skidding and loss of control in slippery or unstable driving conditions. It continuously monitors the car's movement and adjusts the individual wheel brakes and engine power to keep the car stable and on its intended path.