Well I have seen a few issues in my career over these past 18 years with socializing and being a good Administrator.
A fine line is drawn in the sand between a good manager and the employees. Yes you can be friends, but you need to keep a bit of respect so you can properly complete your job.
System Admins have a similar issue, but it is not really due to a respect ideal more of a abuse issue. If your best friend or close friend does something against policy are you going to report it? I know I am because I keep that fine line in the sand. I am not trying to be a sour puss or an kiss up, I have my career to protect.
The company you work for has hired you to complete a task and they are trusting you with it, please respect that try to keep everyone on the same level when you review logs.