Source Advanced Race Guide
Mounted on a sturdy 15-foot pole, this flag inspires all orcs belonging to the tribe it represents. As long as they are within 60 feet and can see the standard, they gain a +1 morale bonus on saving throws against fear effects. The standard must be carried in one hand by a member of the tribe to have any effect (it provides no bonus if hung on a wall, draped over a throne, and so on). If the standard is brought low (such as by its bearer dropping it in the mud), defiled, destroyed, or captured, the tribe’s members take a -1 penalty on attack rolls and saving throws versus fear effects for the next hour. If the orcs reclaim a captured standard, the penalties end and the bonus is restored.