This is all quite interesting. There seem to be 2 sorts of 'shoulder ornaments' going around, those which are used to denote a unit distinction of some kind and those which are regimental in nature. In the British Army, some regiments have one as a regimental distinction. It's just part of the uniform - for example, sergeants and above in the Cheshire Regiment wore a dull red one on the left shoulder. This was a single loop right around the arm with a little noose, the loose end being attached to the button on the left breast pocket... a bit of a problem for me as in those days the female No.2 Dress tunic didn't have breast pockets! Just to confuse things, as an internal and more unofficial thing, Cheshire soldiers who had passed the Regular Radio User course wore a white lanyard on the right shoulder, a bit more fancy, braided thing. Unit distinctions come as Battle Honours (borne on the Colours & the Drums) or very rarely as specific badges, but it is rare for a medal to be awarded to a unit rather than an individual - a George Cross to the Royal Irish Regiment is the only one which comes to mind right now. I cannot recall any UK regiment wearing a foreign... er, I think there's an Orange Lanyard knocking around in the ancestry of what was the Queen's Regiment but I do not think it is still worn by the current regiment. And a couple of US Presidential Unit Citations, which are worn as a sleeve badge rather than in US fashion over the right breast pocket.