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Thanks Oleg. The implementation we were looking at was similar to this:

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Hi there. I'm hoping someone may be able to help. We're launching a badge programme to acknowledge our most active members.  I know that google penalises badges and widgets but i was wondering if this is down to implementation i.e. we were intending to approach it much the same way as Houzz currently does here http://www.houzz.co.uk/buttonsAndBadges . I caveat this by saying I'm not technical but it looks like Houzz doesn't use REL=NoFollow.  How is this the case?