Question about handling chatty neighbors while running an excavator

Last week I was operating an excavator on a residential street, digging for a new sewer line. This older lady from across the street brought over a glass of lemonade and started asking all about the machine and how deep we were going. I tried to be friendly and answer, but I was still working the controls, and it got really awkward when I almost didn't see my spotter's stop signal because I was looking at her. Some guys on my crew say we should always take time to talk to neighbors, it keeps everyone happy and avoids complaints. But others argue that any distraction is unsafe and we need to stay focused, even if it seems rude. I felt stuck between being polite and doing my job right. What's your approach when people come up to you on site? Do you engage or keep it strictly business?