Good question! As I see it, it’s a case of needing strong boundaries, and it sounds as though you have those in place. You don’t condone the wrongdoing, you simply understand the position that they’re in and see why they’re making those choices. You might make different choices in the same situation, but that doesn’t mean you can’t care about them, and still love them.
The difficulty, perhaps, is in this question: Whose opinion are you worrying about?
Who are these ‘people’ scrutinizing you? Do they matter? Are they, in fact, real? (for many of us, the voice of criticism in our own head shouts far louder than anyone else).
You fear being judged, I suspect, because the people close to you are living by values very different to yours. You don’t want others thinking that is true of you too. What’s authentic for you? Who, and whose opinion, matters to you? And why?
Ultimately, it is okay to distance yourself from friends, and even family, if their values are too far out of alignment with your own. Don’t ever feel guilty about doing what’s right for you, but do question why. If you’re acting authentically, truly in alignment with your own values, then you don’t need to explain yourself – and, strangely enough, you’re less likely to be asked to. It’s the lack of integrity and congruence that causes people to question your motives.
When you stay true to your values, you have nothing to fear. Just try to make sure they are your values, and that you’re not acting out of either a misplaced sense of loyalty or an unreasonable fear of authority. Not always easy to see, but keep coming back to this question: Who am I trying to please here? And why?