Television footage on Saturday showed Walker drinking a beer at AAMI Stadium during the pre-game coverage of the Port Adelaide and Fremantle clash.
The 21-year-old was named as one of the Crows' emergencies for Sunday's clash against Collingwood at Etihad Stadium, but played for Norwood in the SANFL on Friday night.
Craig has yet to see the footage or speak to Walker about the incident but he believes it is a media beat-up.
"If he was probably at home having a barbeque with his mate and had a beer it wouldn't be an issue would it?" Craig said.
"My understanding is that he was at the footy having a beer, I don't think he was intoxicated.
Craig said he expected his players to act responsibly, but had no issues with them enjoying a quiet beer after a game.
"Do you think there's anything wrong with a guy having a beer after a game of footy on the next day?" he asked the media contingent after the Crows 43-point loss to Collingwood.
"Unless we expect all of our AFL players to be teetotalers, which I don't. I expect them to be responsible but I certainly don't expect them to be teetotalers."
Adelaide ruckman Sam Jacobs also said he didn't have a problem with a teammate having a beer after a game but suggested that perhaps it wasn't the smartest idea to drink it in public.
"Personally I don't see too much wrong with it," Jacobs said.
"He wasn't a travelling emergency or anything like that. A lot of people didn't know that he had played Friday night already. I don't have a problem with it but I guess in today's game you've got to be a bit smarter in how you do things."
Walker was dumped from the Adelaide side following their 96-point loss to Melbourne and has spent the past two weeks in the SANFL where he kicked seven goals in his first game in exile, and five on Friday night.
The uncontracted forward's form slump at senior AFL level, along with this latest incident, has been viewed by some as an indication that he may already have signed with the AFL's 18th team, Greater Western Sydney.
But Craig says that is an unfair assessment of Walker, who was sent back to the SANFL to improve on his work rate and effort off the ball.
"In fairness to Taylor I can't question his attitude at the football club and his work ethic," Craig said.
"He's trying to really take on board the things that we're asking him to do.
"He had some areas of his game that needed to be tightened up. He'll add to his game, and when he does he'll play and he's endeavoring to do that."
The Crows are already accustomed to the speculation surrounding uncontracted players, with All Australian defender Nathan Bock constantly linked to Gold Coast last year, with whom he eventually signed.
Craig is yet to speak to Walker about renewing his contract but hoped his players would be honest with the club if they had been approached by GWS.
"We've got a lot of players uncontracted," Craig said.
"Nathan van Berlo is still uncontracted. There's always going to be that rumour and innuendo about who is and who isn't. We've been through it with Nathan Bock and we know it will unfold as time goes by.
"It puts a huge amount of pressure on players just from speculation to start with and still the best policy with me is to be upfront with your football club. If they feel comfortable to do that and feel safe enough to do it then it puts everything to bed, otherwise it will continue."
Walker was also reported during Friday night's SANFL game for a late bump on a Port Adelaide player.
