Why do Olaf and Esme listen to Carmelita?

[Dante]

I would imagine it's because Carmelita reminds Olaf and Esmé of themselves; she's a cruel, selfish bully, and that unquestioning pride and self-assertiveness she possesses strikes a chord with the villains. It's also possible that they're just amused to see the Baudelaires getting bullied, too.

[Foxy]

I don't think Olaf wants to listen to Camelita. Esme sort of makes him because she adores Carmelita because, like Dante said, she reminds Esme of herself.