This thread gave me the idea that perhaps we should in fact have carry-able banners/standards (see spoilered image). I did a search and only found one other very old suggestion like it, so here it is a-fresh. I don't have a model, of course, but I don't think a stick with a bit of cloth on it would be hard to make for someone.
These could go in the shield/off-hand slot and be like a secondary item, giving some kind of effect to those within a certain radius (much like having two shielders next to each other creates a +1 shield effect). My thoughts would be perhaps a (vague figure)10% increase to hit points, or armour rating (to represent morale) while the standard is nearby, which could potentially keep people from dying near the standard (mind over matter-esque).
This would also give cav another role aside from the hated backstabbers and moving archer platforms that they currently are, since they could carry the standard to an area of the battle where your team is doing poorly, in an attempt to give them the edge in that area (much like the use of a general unit in the Total War series).
Alternatively, they could just be a new polearm weapon rather than a shield-type equip-able. But having them as a shield-slot item would begin a movement towards having more non-combat specific (utility) items.
Another thought would be that you could have these as deployable items which you could put at the center of your defence (Strategus/siege thinking), or on top of your hill (in battle).
Of course there would have to be a limit to how many of these banners would be effective in one area (much like I believe you can only get +7 from shielders next to each other?) - easy fix.
Added bonus: It would also show off this new banner system that seems so popular.