This is a classical situation for conducting a risk analysis! If the can rolled off the bottom layer of the pallet onto a sealed and swept concrete floor and was detected immediately, I might be able to follow management and allow to return the can to the pallet. If it had fallen off a pallet on the top rack in a warehouse, the story might be different and I would be inclined to follow your advice.
List the hazards that could have compromised the product (broken seal and subsequent microbial contamination/growth of contents is one of them, external contamination of the sealed can is another - aspects like potential of pathogen survival on exterior of sealed can need to be considered as well, maybe it is possible to wash the can without compromising product safety) and evaluate their importance for product safety in the specific case (e.g. not every fall of a can results in its seal being broken). If the risk analysis indicates the product is likely to be compromised, you should have a case against management and be able to easily convince them to dispose of the compromised product for reasons of brand protection, avoiding of negative publicity or compensation claims. If the risk analysis tells you the product is unlikely to be compromised you might be able to follow management's advice and reduce wastage. In any case, the two parties, management and QC/Food Safety should get together and devise a protocol (standard) to deal with situations that involve potentially compromised product.