It dampens vibrations :dunce:.
Actually, when a cylinder fires it produces torque on the crankshaft. In our case, you have six cylinders that are all producing torque and imparting it on the crankshaft. At a certain "magical" speed, that torque can cause the crankshaft to resonate (picture tapping a wine glass with a fork and causing the wine glass to vibrate rapidly). That resonance can get to the point that it causes damage to your crankshaft-or worse.
A vibration damper/harmonic balancer is designed to both impart extra mass on the crankshaft to prevent resonance AND to help dissipate the resonance.
Signs of failure are a loose crankshaft pulley, a poorly wearing belt, and worse.