Operation

Main article: Directional stability
During normal driving, ESC works in the background and continuously monitors steering and vehicle direction. It compares the driver's intended direction (determined through the measured steering wheel angle) to the vehicle's actual direction (determined through measured lateral acceleration, vehicle rotation (yaw), and individual road wheel speeds).
ESC intervenes only when it detects a probable loss of steering control, i.e. when the vehicle is not going where the driver is steering.[18] This may happen, for example, when skidding during emergency evasive swerves, understeer or oversteer during poorly judged turns on slippery roads, or hydroplaning. ESC may also intervene in an unwanted way during high-performance driving, because steering input may not always be directly indicative of the intended direction of travel (i.e. controlled drifting). ESC estimates the direction of the skid, and then applies the brakes to individual wheels asymmetrically in order to create torque about the vehicle's vertical axis, opposing the skid and bringing the vehicle back in line with the driver's commanded direction. Additionally, the system may reduce engine power or operate the transmission to slow the vehicle down.
ESC can work on any surface, from dry pavement to frozen lakes.[19][20] It reacts to and corrects skidding much faster and more effectively than the typical human driver, often before the driver is even aware of any imminent loss of control.[21] In fact, this led to some concern that ESC could allow drivers to become overconfident in their vehicle's handling and/or their own driving skills. For this reason, ESC systems typically inform the driver when they intervene, so that the driver knows that the vehicle's handling limits have been approached. Most activate a dashboard indicator light and/or alert tone; some intentionally allow the vehicle's corrected course to deviate very slightly from the driver-commanded direction, even if it is possible to more precisely match it.[22]
Indeed, all ESC manufacturers emphasize that the system is not a performance enhancement nor a replacement for safe driving practices, but rather a safety technology to assist the driver in recovering from dangerous situations. ESC does not increase traction, so it does not enable faster cornering (although it can facilitate better-controlled cornering). More generally, ESC works within inherent limits of the vehicle's handling and available traction between the tires and road. A reckless maneuver can still exceed these limits, resulting in loss of control. For example, in a severe hydroplaning scenario, the wheels that ESC would use to correct a skid may not even initially be in contact with the road, reducing its effectiveness.
In July 2004, on the Crown Majesta, Toyota offered a Vehicle Dynamics Integrated Management (VDIM) system that incorporated formerly independent systems, including ESC. This worked not only after the skid was detected but also to prevent the skid from occurring in the first place. Using electric variable gear ratio steering power steering this more advanced system could also alter steering gear ratios and steering torque levels to assist the driver in evasive maneuvers.
Due to the fact that stability control can sometimes be incompatible with high-performance driving (i.e. when the driver intentionally loses traction as in drifting), many vehicles have an over-ride control which allows the system to be partially or fully shut off. In simpler systems, a single button may disable all features, while more complicated setups may have a multi-position switch or may never be truly turned fully off.