[1] The award was established by British swordmaker Wilkinson Sword in 1966, with the company presenting a ceremonial sword to one unit each of the Royal Navy (including the Royal Fleet Auxiliary), British Army, and Royal Air Force; each unit having been judged as making the most outstanding contribution to community relations within each service during the calendar year.
[1][2] An award can be shared between multiple units on the same operation: for example, the 1998 Navy award was presented to the Royal Fleet Auxiliary ships Black Rover and Sir Tristram for their involvement in Operation Teller (the British relief response to Hurricane Mitch).
[1][2] The award can also be shared with foreign military units: the frigates HMS Galatea and HMNZS Canterbury received the 1983 Navy Sword of Peace after a series of port visits made by the two ships to African nations sparked several diplomatic initiatives.
[1] Unlike the awards for the three services, the "Special" sword was only presented if such a unit existed and was deemed worth recognising.
[1] After Wilkinson stopped the production of swords in 2005, Firmin & Sons began sponsoring the award.