Orcs expect smaller greenskins to run away, and so it doesn't really surprise them when they do. The sight of fleeing Gobbos and Snotlings simply reminds the bigger and bolder Orcs why they are best – they simply guffaw at the cowardly little 'uns and get ready to show them how a proper greenskin can fight.
Source: Warhammer Armies Project: Unofficial 9th Edition (v2.2)
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Models with this special rule treat Goblins and Snotlings of all types as Expendable.