Many young Christians (young by age or young by faith) use this verse to make themselves feel good about going to parties or hanging out with those who may not be the best company or example. The main point of this verse is typically missed. Jesus was a LEADER. Jesus was an INFLUENCER. Jesus didn't hang out with people and take part in their 'bad stuff". Jesus hung out with people with hopes that He would rub off on them and not that they would rub off on Him. Yes, Jesus hung out with sinners but Jesus didn't sin.
Lord, help me to be a witness, leader and influencer to those around me, whomever they may be.