can a person really just knowingly take part in any illegal activity, and as long as they're not the only employee, the company is to blame and they are free? even if that were true, and i doubt it is, it would need immediate changing.
That said, it may be true in VW's case, I don't know.
In this case, it's a product sale regulation. It's not illegal to manufacture non-compliant engines, but it's illegal to sell them. So in a world of individual-only responsibility, that would make the individual sales agents who performed the transactions with customers liable. I don't think that's an improvement.
(This answer may change if the sales agents know or should have known that the product was not legal to sell; this definitely applies to e.g. sales of alcohol to minors)
Edit: my bad, in fact you can, if the order is illegal, and it has been unsuccessfully used as a legal defense in hundreds of cases. But, considering what you risk when you don't follow orders, it seems like a tought decision to take. If you don't follow orders, you are done and will probably be punished. And if you follow and you get caught it's on you and you will have to assume full responsability...
Here is more info on this subject: http://usmilitary.about.com/cs/militarylaw1/a/obeyingorders....
You don't have to work on the basis of belief, there's a lot of history on this topic: https://en.wikipedia.org/wiki/Superior_orders