As @kofa mentions it takes or attempt to take into account our perceptual relationship with color.
That doesn’t mean it will always succeed or be better. The case in point are those cameras that don’t have good reference values will often end up with skewed color and so tweaking and confirming those base values is key to successfully applying the CC. Also after some reading there are also instances where color accuracy can be negatively impacted by the perceptual correction. So its another perhaps more sophisticated approach but like all manipulations there can be caveats and trade offs…
The general explanation of this approach is fairly well described here. Section 5 explains the application of it for the purposes of white balancing… Yuhao Zhu