Thus morality gave in to politics, so much so that the standard on which to judge whether an act is right or wrong and whether a person is good or bad was reduced to loyalty to the political head.
I do not know exactly where to use the past tense and where to use the present tense in this sentence. To me, "the standard on which to judge whether an act is right or wrong" in this context refers to some kind of permanent standard. If so, "is" is appropriate. But I doubt this breaking of the unity of tense is not legitimate.