Kathleen is an interesting villain, because instead of being profit driven like August, or even lust driven lile Chuck, she seems to be doing shit just for the evulz. She seems the only one who truly enjoys the degradation and corruption aspect of the club. Without her, the club would just be a fancy whorehouse.
Despite Ian being far more naive and moldable than Edwin, already looking up to Chuck and being familiar with the club already, she seems to have pinpointed Edwin as her sadistic "protege", and is looking to corrupt him from an average chump into a monster like her.
Despite Ian being a pussy hound and a pervert, there's still a childlike naivite to him that would stop him from truly embracing Kat's brand of sadism beyond surface level. But Kat has probably noticed that underneath Edwins "nerdy loser" exterior lies a disturbing darkness and huge repressed anger, and after finding out about Vicky's trial and tribulations, selling her body for survival of her family, that sealed the deal for Kat, who seems to be using Rose to stir up Edwin's mommy issues and make him more pliable for her.
Of course, like most villains, Kat's downfall is already getting orchestrated by her own ego. Despite Ian being more fit to be a chess piece, Kat wants a true sucessor for her brand of cruelty, and the only person capable of that is Edwin. But Edwin is also a wide eyed idealist, and his mother complex is precisely what makes him the perfect foil to Kat. While Kat was right that Vicky's porn career awakened something dark in Edwin, he's also extremely devoted to his mother. While Kat assumed she'd have an easy time molding Edwin, assuming he'd hate his mom and women in general, but Vicky became a martyr in Edwin's mind, the proverbial angel on his shoulder, and the cause of his savior complex, who sees his own mother in every woman tormented by the club, and has the foolish need to save them, even at his own expense. And as Edwin sees more of the club's inner workings, the more dertermined he is to save the girls.
Of course, that depends on your individual playthrough. In an evil playthrough, Edwin indulges in his dark side, tapping into his pent up anger, punishing the "whores" who remind him too much of his mother, who is a "dirty whore" and the "shining angel" at the same time in Edwin's mind, a juxtaposition of his moral code that gave him such a strange attitute towards sex and a lot of pent up anger that he tells himself he doesn't have.
Combine that with a lack of a father figure to teach him to properly vent his emotions, and Edwin has become the weirdo loner who watches porn of his own mother that we see at the start of the game, and if not for Ian's devotion to him, he would probably not have anyone in his life except his mom. Edwin's inner monologue changes a lot depending if he's good or evil. I want to commend the writer, because it's so interesting to see Edwin being almost self aware of his issues, but he still seems ignorant or in denial about his motivations and the darkness he carries. Every character is so well written, and the dynamic of Kat and Edwin is extremely interesting, wether Edwin is good or evil.