I know that if I feel like arresting a random citizen just because I can, I will lose the respect of their family. This is fair enough.
However, if I manually issue an arrest action on a citizen who is genuinely a criminal but hasn't been automatically arrested because my police force are incompetent and corrupt - do the criminal's family still take offence?
I haven't found a married criminal in ages to test it on.
Having finally found a married criminal to test this on, I can confirm that even though they are actually evil criminal masterminds having them manually arrested does give the thought "A member of my family was arrested" and a corresponding roughly 25% respect drop.
I would see if this happened when the police arrest crims off their own back, however they seem too incompetent to sort this out themselves. I'll keep an eye out.