For a concept to be psychosocial means it relates to one's psychological development in, and interaction with, a social environment.The individual needs not be fully aware of this relationship with his or her environment. It was first commonly used by psychologist Erik Erikson in his stages of social development.owever, not all psychosocial activity is therapeutic. In some environments and social movements, such as with post-WW2 East Germany Stasi's zersetzung, which has been called psychosocial crime, the development of the individual is intentionally exploited to cause damage to the individual's ability to form social bonds.