This is something the character carries into battle to show his disregard for the enemy. It could be a swagger stick or a nonchalantly smoked cigar, or something more grandiose like a billowing, scarlet cape or a chestful of shiny medals.
A unit led by a character who carries a trademark item will be reassured by his presence and may re-roll any failed Morale or Pinning checks that it suffers. However, if the character is slain the unit must pass a Morale test to avoid falling back.