It's recognition for having done one's duty under combat conditions...which tends to raise morale...
I remember seeing images of a German staff car with it's occupants as stiffs. The inside of the car was littered with the 2nd class cross. Then seen in this image, the Russians displaying the war booty with all the unawarded IC 2nd class, imagine being a participant, surviving the war on the German side then visiting Russia's war museum and seeing this.
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