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Institutional storytelling is an increasingly prominent communication strategy, yet research has primarily focused on how institutions tell stories to individuals rather than how they can elicit stories from individuals. This conceptual paper explores the identity-shaping potential of institution-initiated storytelling, positioning it as a transformative communication process that operates across micro (individual), meso (peer/community), and macro (cultural) levels. Drawing from research on narrative identity, self-persuasion, and macromarketing systems, we develop a framework showing how storytelling fosters self-reflection, professional identity development, and social belonging, while also influencing collective norms and cultural narratives. To ground this framework, we provide an illustrative case study of a storytelling intervention designed to strengthen STEM identity and reduce impostorism among graduate students. Findings suggest that institutional storytelling can be a powerful mechanism for empowerment and social change, but also reveal its complexity, highlighting the importance of ethical and inclusive design in storytelling practice.