Do you choose closeness of friendship over integrity?

Ever been a victim of being caught in between supporting your friend or supporting a stranger who is morally right? On one side you really want to defend the right thing even if you know that you are hurting your friend, on the other side your friend feels betrayed that you are not defending them. We were at a bar with my longtime friend and a couple of girls from the same dorm. we had gone out partying, my friend Krissi laughed at a racist comment from a stranger, Jenna my roommate got really offended by it , and got even mad when Krissi seemed to kind of enable it, yeah I've just started getting to know Jenna and she was justified and I agree with that because it's a no brainer not to be or support any racist comment, so pulling Krissi away seemed to be the only logical thing to do cause I could not lose my friend and yeah I tried to make her see the issue from Jenna's perspective. Yeah, your friend maybe wrong at times but he or she deserves one on one honesty.

Let me know from the comments what you think should be done at such a situation and more thoughts on this.