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What's unprofessional about it, they weren't working.
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Which I think is what's dangerous about it - It provides a false sense of security. I mean yes in theory if your boss puts on a party and says or even implies 'hey go nuts its not a work function and it won't effect your job' then you should be able to do whatever you want within reason. But in reality you are still surrounded by the people you work with who are no doubt from vastly disparate backgrounds and depending on your behavior may end up with vastly disparate opinions of you. If your boss didn't like something you said or did at a company party, you are basically putting your faith in the the idea that they will be able to separate your performance at work from that. Which would be nice but I wouldn't risk my job over it.
Whether that's fair or not, it's simply unavoidable.