I was in Germany last week and talking about banners and how a unit was awarded the Scharnhorst Orden which was pretty special.As far as I am aware it was more an award to a unit like a company or regiment and the award was attached to the banner.I don't think it was common practice though.
If a unit, organization, institution, etc. was awarded a decoration, it was awarded or pinned to the unit's banner. This applied for civilian decorations too. The practice was rather widespread at least in the DDR and USSR.