Enron scandal

The Enron scandal, revealed in October 2001, eventually led to the bankruptcy of the Enron Corporation, an American energy company based in Houston, Texas, and the de facto dissolution of Arthur Andersen, which was one of the five largest audit and accountancy partnerships in the world. In addition to being the largest bankruptcy reorganization in American history at that time, Enron was attributed as the biggest audit failure.

Enron was formed in 1985 by Kenneth Lay after merging Houston Natural Gas and InterNorth. Several years later, when Jeffrey Skilling was hired, he developed a staff of executives that, through the use of accounting loopholes, special purpose entities, and poor financial reporting, were able to hide billions in debt from failed deals and projects. Chief Financial Officer Andrew Fastow and other executives not only misled Enron's board of directors and audit committee on high-risk accounting practices, but also pressured Andersen to ignore the issues.

Why "Armchair Skeptic"?

I first heard the term "armchair skeptic" about two years ago, on the JREF cruise to Alaska. One of the guest speakers was complimenting the others for all the work they had done promoting skepticism and fighting against the purveyors of pseudoscience, and in trying to encourage the attendees to be skeptical activists, the speaker made a rather sneering reference to those who aren't activists as being mere "armchair skeptics".

That set my back up a bit. I certainly admire and appreciate the work that skeptical celebrities like James Randi, Phil Plait, Michael Shermer, and others have done over the years to promote science, skepticism, and critical thinking. I also admire the hard work put in by field investigators, like Joe Nickell, who spend countless hours looking for evidence and explanations for paranormal claims.

I also think it's terrific that ordinary people have had the wherewithal to start projects like Stop Sylvia Browne and What's the Harm?. But there are a lot of us out there with busy lives that don't have the time, energy and resources to be a skeptical activist or investigator.

That doesn't mean the rest of us are just sitting on the sidelines. Applying critical thinking in our daily activities &mdash at home, at work, with our friends and families &mdash may not be activism, but it sets an example. If even one of your friends, colleagues, or family members follows that example, you've made a difference. You don't have to set out to change the world; realistically, most of us can't. That's nothing to be ashamed of or to be scorned. The world needs armchair skeptics, too.