We examine the relationship between stakeholder orientation and cost stickiness (i.e., managerial asymmetric resource allocation decisions in response to firms’ activities change). Using the staggered adoption of the U.S. non-shareholder constituency statutes as a proxy for stakeholder orientation, we find strong empirical evidence of a positive relationship between stakeholder orientation and asymmetrical cost behavior. We further show that stakeholder-orientated managers retain slack resources when firms’ activity declines because of agency problems. Our results are robust to alternative model specifications, related sub-sample analysis and various measures of costs.