Quote Originally Posted by Sephiroth1999AD
The ribbons they are wearing are a symbol of their friendship and how they're all fighting together. Cloud's wearing one, so is Tifa, and so are Barret, Cid and Yuffie. I don't remember seeing Vincent, Red XIII and Cait Sith with ribbons, but I'll see if they have them too. In addition, Ribbons were arguably the best accessories in FFVII since they protected you from all status ailments.

EDIT: Vincent, Red XIII and Cait Sith also have Ribbons in AC. And by the way, the Ribbons are red, not pink.
I'm pretty sure Cid's ribbon is pink too.