Post process container handling

Here is a scenario: A warehouse employee finds a can of finished product that fell from a pallet onto the floor.

My advice: Note the code of the can for traceability purposes and then dispose of the can because the floor of the warehouse is more than likely less than sanitary, regardless of the can being hermetically sealed, not to mention that the integrity of the double seam may have been jeopardized upon impact.
Management's advice: Find the pallet that it would have come from and put it back. Just make sure the can codes match up so there isn't a mislabeling incident. No sense destroying good product. It's a sealed can, after all.

What would your recommendation to management be? Would you step aside and let them continue to run the show, or would you stand your ground and try to convince them that it's not worth taking the chance? If so, how?

If you can't argue your case easily then maybe you’re wrong, but then I believe you have argued your case. If I was your management then you convinced me for the one can. I agree you should dispose of it.

Now if it was a full pallet you’d need a stronger argument, I would want to know the risks and alternatives…

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.

Thank you all for the input. Looks like it's a good time to put the risk assessment tools to use!