"You have got to remember this is one person's accusation and her standing in the community and culpability is not beyond reproach," Flexman said.
Flexman confirmed investigations were still ongoing but said he was "very disappointed" with the players' behaviour.
"I don't think it's a good look," Flexman told Fairfax.
"Clearly it's something as an organisation, it's not good, and it's not acceptable."
Flexman said management were not present when the stripper was performing and wouldn't have allowed the performance to take place had they known.
After the Chiefs lost to the Hurricanes in last weekend's Super Rugby semifinals, the players hosted a get-together at the Okoroire hot pools, near Matamata, to mark the end of their campaign.
The incident was especially disappointing for the Chiefs after Allardice apologised on Tuesday for yelling "here come the gays" at teammates dressed in costume.