From Crisis to Credibility: The Strategic Power of Storytelling

17 September 2025 Reading Time: 5 minutes

Erla Björg Eyjólfsdóttir:

I have seen firsthand how fragile trust can be when organizations face a crisis. A single incident—whether a corporate scandal, a flawed product launch, or a communications blunder—can erode credibility built over years.

In such moments, facts and figures are necessary, but they are not sufficient. Stakeholders crave more than answers. They want to reconnect with the values behind the brand. They want to know who you are,  what you stand for, and why they should trust you again. 

That’s where storytelling becomes not just valuable—but vital. 

Why Storytelling Rebuilds Trust in a Crisis 

In high-stakes situations, organizations often lean heavily on press releases and data. 

But as Annette Simmons (2006) writes in The Story Factor, storytelling moves people more effectively than logic or evidence because it speaks to shared human experiences. During crises, when skepticism is high and emotions are raw, a sincere narrative can bridge the gap between disillusionment and renewed trust. 

In my professional experience, a crisis is never just an isolated event—it is a narrative gap waiting to be filled. If an organization does not provide its own story, others will supply one instead, often fueled by speculation, social media backlash, or misinformation. The result? A narrative that damages reputation and weakens trust. 

Authentic storytelling enables organizations to reclaim their voice and steer the public dialogue. Simmons (2006) identifies six types of stories that leaders can use; in crisis  recovery, three are especially powerful: 

• The “Who We Are” Story – When trust is fragile, audiences want to know who is behind the brand. Sharing personal stories of leadership, values, and past decisions helps humanize the organization. Vulnerability, when expressed thoughtfully, builds connection.
• The “We Know What You’re Thinking” Story – Acknowledging public doubt or criticism head-on often diffuses tension. Rather than ignoring the elephant in the room, this story anticipates the audience’s concerns, showing empathy and respect. 
• The “Values in Action” Story – Anyone can claim to “value accountability” or  “prioritize customer well-being,” but the proof lies in action. A compelling story illustrates those values at work—through real decisions, real consequences, and real growth. 

Johnson & Johnson’s Tylenol Crisis: A Storytelling Success 

One of the most cited examples in crisis communication comes from Johnson &  Johnson’s response to the 1982 Tylenol poisonings, where seven people tragically died from cyanide-laced capsules. Faced with a reputational disaster that could have destroyed the brand, the company made a defining choice: prioritize people over profit (Olanirian et al., 2012). 

Rather than hiding behind sterile statements, they pulled 31 million bottles from the shelves, initiated transparent public communication, and redesigned their packaging to ensure future safety. In doing so, Johnson & Johnson told a powerful story—not just through words, but through decisive action: “Consumer safety is more important than  our bottom line.” 

The Tylenol crisis is often described as a benchmark in crisis communication,  demonstrating how swift and transparent storytelling can restore trust (Olaniran et al., 2012). Olaniran et al. (2012) argue that Johnson & Johnson’s handling of the Tylenol crisis illustrates how proactive storytelling and decisive action can transform a reputational disaster into a credibility-building narrative. 

In my opinion, this approach didn’t just salvage their brand—it redefined how companies respond to crisis.

As a lecturer, I often bring this case into my classes at  Iceland’s Bifröst University. Students quickly recognize how Johnson & Johnson’s narrative, built on values and decisive action, transformed what could have been the end of a brand into a story of restored credibility. For them, it is not just history—it is a timeless lesson on how authentic storytelling shapes public trust. 

Lesson Learned 

In crisis communication, credibility comes not from words but from actions that embody your story. Johnson & Johnson didn’t just say they cared about safety—they proved it.  That alignment between story and behavior is what ultimately rebuilt trust. It also highlights the importance of storytelling itself: without a narrative to frame those actions,  the public would not have been able to connect meaning with the company’s response.  Storytelling is the bridge that transforms actions into lessons, and lessons into lasting credibility. 

Tylenol and the Power of Storytelling in Crisis Communication 

The Johnson & Johnson case is more than a textbook example of crisis management— it is storytelling in action. Strategic communication and the Tylenol crisis response share  several common threads: 

• Turning facts into meaning – Storytelling transforms raw data into a narrative people can understand and emotionally connect with. Johnson & Johnson didn’t just report that cyanide was found; they told a story about valuing human life over profit, giving meaning to their decisions. 
• The “Who We Are” story – Simmons (2006) emphasizes the importance of revealing values and identity. Johnson & Johnson’s leadership made their character visible through decisive action, showing the world they were a  company that put integrity and safety first. 
• Values in action – In storytelling, values resonate when they are demonstrated,  not declared. The decision to recall 31 million bottles, despite massive financial costs, was a vivid illustration of responsibility in action.
• Acknowledging doubt head-on – Effective storytelling anticipates skepticism.  Johnson & Johnson confronted public fears openly in press conferences,  acknowledging concerns instead of dismissing them, which reinforced trust. 
• Crisis as a turning point – Storytelling frames crises as moments of  transformation. What could have been remembered as a corporate downfall became a narrative of leadership and resilience—Johnson & Johnson not only survived but emerged stronger, setting a new industry standard. 

This alignment between strategic storytelling principles and real-world crisis response shows why stories are essential. They transform actions into meaning and meaning into  lasting credibility. 

Crafting the Story You Live 

In my advisory work, I often contrast two approaches to post-crisis messaging: 

• “We take full responsibility for this error.” 
• “When we identified the issue, our frontline team immediately stopped operations, notified regulators, and began reaching out to affected stakeholders.  Here’s how we’re making it right—and how we’re preventing it from happening  again.” 

The first is technically correct. The second tells a story. It acknowledges failure,  demonstrates accountability, and paints a forward-looking picture. 

That’s the kind of message that resonates—because it doesn’t just say what happened;  it shows what was done and why it mattered. At the same time, every crisis is unique.  The story must be crafted with sensitivity to its specific circumstances, the stakeholders involved, and the cultural context of the crisis to rebuild trust authentically. 

Storytelling Is Not Spin—It’s Strategy 

The most important lesson I stress to clients is that storytelling in a crisis is not about controlling the narrative—it is about connecting with people when it matters most.

A well-crafted, honest story can: 

• Turn abstract corporate values into lived experiences. 
• Transform a crisis into a catalyst for change. 
• Show that behind the corporate voice are real people who care and act accordingly. 

As Simmons (2006) reminds us, the stories we choose to tell are declarations of who we are. And the stories we act out—especially in difficult times—are the ones that  define how others perceive us. 

Final Thought: Tell the Story Before Others Do 

In every crisis lies a turning point. Organizations must decide whether they’ll let others define the story—or step forward and own it themselves. The most credible narrative is  the one you live, not just the one you tell. 

Storytelling is essential in this process because it frames actions in a way that people can understand, remember, and connect with emotionally. Without a story, even the  best decisions risk being reduced to dry facts. With a story, those same decisions become powerful demonstrations of values in action. 

When actions and stories align, trust becomes more than a message. It becomes a legacy—and the foundation for future credibility. 

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Erla Björg Eyjólfsdóttir is a Reykjavik-based Strategic Communication Specialist and a Lecturer at Bifröst University. She is a #WeLeadComms honoree.

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References 

Olaniran, B. A., Scholl, J. C., & Williams, D. E. (2012). Johnson and Johnson phantom  recall: A fall from grace or a re-visit of the ghost of the past. Public Relations Review  38(1), 153-155. https://doi.org/10.1016/j.pubrev.2011.08.001

Simmons, A. (2006). The story factor: Inspiration, influence, and persuasion through the  art of storytelling (2nd ed.). Basic Books. 

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Written by: Editor